When buying a home, especially a first home, the down payment can seem like the biggest hurdle. There are a variety of loan programs that can help make the most of what money you have to put down, but you can also use “gifted funds” for your down payment. Gifted funds are funds given to you either by parents or another eligible relative. There are guidelines for this type of down payment, and I am happy to talk with you about those.

Before considering using gifted funds, there are a few things to be aware of:

Gifts must be provided by a third party not involved in the home transaction

The donor must be an eligible relative of the borrower

The seller, real estate agent or mortgage professional cannot provide a down payment gift to the buyer

A government agency or non-profit organization may provide a gift if it meets the lender’s requirements

Gift funds require a letter from the donor that documents the amount, date and donor name and proof of receipt of gift funds from the donor’s account is required

Some programs may require the borrower to contribute to the down payment in addition to the gift

I am more than happy to sit down and discuss all of your down payment options for buying a home when you are ready.